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Singapore and Brunei Darussalam enhance cooperation in financial innovation

Singapore and Brunei Darussalam enhance cooperation in financial innovation

On 12 May, the Monetary Authority of Singapore (MAS) announced
that it has signed a FinTech Cooperation Agreement (CA) with the Autoriti
Monetari Brunei Darussalam (AMBD) to foster innovation in financial services
between Brunei Darussalam and Singapore.

The signing took place during Singapore President Mdm
Halimah Yacob’s state visit to Brunei Darussalam. Signing on behalf of AMBD was
Managing Director Yang Mulia Yusof bin Hj Abd Rahman of AMBD, while MAS was
represented by Deputy Managing Director Jacqueline Loh. The signing was
witnessed by both President Halimah and His Majesty Sultan Haji Hassanal
Bolkiah Mu’izzaddin Waddaulah ibni AlMarhum Sultan Haji Omar ‘Ali Saifuddien
Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam.

The FinTech CA between MAS and AMDB aims to facilitate the
sharing of information on emerging fintech trends and developments and promote
joint innovation projects between both countries. It will also establish a
framework for both authorities to provide support for fintech companies to
better understand the regulatory regime and opportunities in each jurisdiction.

Beyond the FinTech CA, AMBD and MAS will also work together
to enhance the retail payment ecosystem between Brunei Darussalam and
Singapore. Both authorities will be guided by a cooperation framework that will
provide mutual benefits to businesses and consumers in the two countries.

Acting as Brunei Darussalam’s central bank, the AMBD
continuously aims to commit to the achievement and maintenance of a sound and
dynamic financial system through the implementation of measures and execution
of financial sector reforms in line with the national economic development
objectives.

These include ensuring the stability of domestic prices and
the financial system –by formulating financial regulations and prudential
standards; assisting in the establishment and functioning of efficient payment
systems –and to oversee them; and to foster and develop a sound and progressive
financial services sector. These are achieved through three core functions,
chief of which is the formulation and implementation of monetary policies, the
regulation and supervision of financial institutions as well as currency
management.

As Singapore’s central bank, MAS promotes sustained,
non-inflationary economic growth through the conduct of monetary policy and
close macroeconomic surveillance and analysis. MAS fosters a sound financial
services sector through its prudential oversight of all financial institutions
in Singapore – banks, insurers, capital market intermediaries, financial
advisors, and stock exchanges. It also facilitates the development of
infrastructure, adoption of technology, and upgrading of skills in the
financial industry.

Recently, MAS announced
that it is collaborating with the Economic Development Board (EDB), Infocomm
Media Development Authority (IMDA) and Institute of Banking and Finance (IBF) to
accelerate the adoption of artificial intelligence (AI) in Singapore’s
financial sector through: (1) developing AI products, (2) matching users and
solution providers, and (3) strengthening AI capabilities.

Just last
month
, MAS also announced that it is developing guide for responsible and ethical use of AI and data analytics
by financial institutions. The guide will set out key principles and best
practices for the use of AI and data analytics, helping financial institutions
to strengthen internal governance and reduce risks of data misuse. It will
cover all segments of the financial sector, including fintech firms.

In the upcoming Singapore
FinTech Festival
organised by the MAS, the festival will highlight FinTech
developments and opportunities in ASEAN. Delegates from ASEAN countries will also enjoy
special rates for tickets to the Festival.